SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2019

Accrued expenses consisted of the following:



	December 31,
	2019		2018
Accrued compensation and benefits	$	574,332	$	697,334
Accrued clinical expenses	4,143,269		58,151
Other accrued expenses	30,150		70,842
Total	$	4,747,751	$	826,327

Fair Value Measurement Inputs and Valuation Techniques

The table below summarizes the valuation inputs into the MCS model for the derivative liability associated with the Senior Convertible Note as of December 31, 2018 and for the derivative liability associated with the Unsecured Convertible Note as of March 8, 2019 and December 31, 2019.



	Derivative Liability
	December 31,			March 8,			December 31,
	2019			2019			2018
Expected dividend yield	—			—			—
Discount rate	29.1		%	29.3		%	13.6		%
Expected stock price volatility	96.0		%	101.1		%	105.6		%
Risk-free interest rate	1.6		%	2.5		%	2.5		%
Expected term	14 months			24 months			21 months
Price of the underlying common stock	$	0.56		$	1.99		$	2.31

The table below summarizes the valuation inputs into the MCS model for the Short-Term Warrants and Long-Term Warrants at their respective dates of issuance.



	Short-Term Warrants			Long-Term Warrants
	March 18, 2019			March 18, 2019			May 17, 2019
Conversion price	$	4.00		$	2.56		$	2.13
Expected stock price volatility	122.0		%	85.2		%	83.4		%
Risk-free interest rate	2.5		%	2.2		%	2.2		%
Expected term	1 year			5 years			5 years
Price of the underlying common stock	$	2.48		$	2.48		$	1.58

The table below summarizes the range of valuation inputs into the Black-Scholes model for the Exchange Warrants on their date of issuance and immediately prior to the exchange.



	Exchange Warrants
	May 1, 2019			December 25, 2019
Conversion price	$ 2.13 - $ 2.53			$ 2.13 - $ 2.53
Expected stock price volatility	84.1		%	87.3% - 88.9%
Risk-free interest rate	2.2		%	1.7		%
Expected term	5 - 5.5 years			4.4 - 4.9 years
Price of the underlying common stock	$	1.54		$	0.56

The table below summarizes the range of valuation inputs into the Black-Scholes model for the outstanding Short-Term Warrants and Long-Term Warrants as of December 31, 2019 and excludes the Exchange Warrants disclosed above.



	Short-Term Warrants			Long-Term Warrants
	December 31, 2019
Conversion price	$	4.00		$2.13 - $2.56
Expected stock price volatility	97.6		%	87.3% - 89.3%
Risk-free interest rate	1.5		%	1.7		%
Expected term	3 months			4.2 - 4.3 years
Price of the underlying common stock	$	0.56		$	0.56

Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation

The table below summarizes the valuation inputs into the MCS model for the Short-Term Warrants and Long-Term Warrants at their respective dates of issuance.



	Short-Term Warrants			Long-Term Warrants
	March 18, 2019			March 18, 2019			May 17, 2019
Conversion price	$	4.00		$	2.56		$	2.13
Expected stock price volatility	122.0		%	85.2		%	83.4		%
Risk-free interest rate	2.5		%	2.2		%	2.2		%
Expected term	1 year			5 years			5 years
Price of the underlying common stock	$	2.48		$	2.48		$	1.58

The table below summarizes the range of valuation inputs into the Black-Scholes model for the Exchange Warrants on their date of issuance and immediately prior to the exchange.



	Exchange Warrants
	May 1, 2019			December 25, 2019
Conversion price	$ 2.13 - $ 2.53			$ 2.13 - $ 2.53
Expected stock price volatility	84.1		%	87.3% - 88.9%
Risk-free interest rate	2.2		%	1.7		%
Expected term	5 - 5.5 years			4.4 - 4.9 years
Price of the underlying common stock	$	1.54		$	0.56



	Short-Term Warrants			Long-Term Warrants
	December 31, 2019
Conversion price	$	4.00		$2.13 - $2.56
Expected stock price volatility	97.6		%	87.3% - 89.3%
Risk-free interest rate	1.5		%	1.7		%
Expected term	3 months			4.2 - 4.3 years
Price of the underlying common stock	$	0.56		$	0.56

The following table summarizes the fair value hierarchy of financial liabilities measured at fair value as of December 31, 2019 and 2018, respectively.



	December 31, 2019
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Derivative liability	$	—	$	—	$	408,000	$	408,000
Warrant liabilities	—		—		2,637,500		2,637,500
Total liabilities at fair value	$	—	$	—	$	3,045,500	$	3,045,500



	December 31, 2018
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Derivative liability	$	—	$	—	$	370,000	$	370,000
Warrant liabilities	—		—		—		—
Total liabilities at fair value	$	—	$	—	$	370,000	$	370,000

The following table summarizes the changes in fair value of the derivative liability and warrant liabilities classified in Level 3. Gains and losses reported in this table include changes in fair value that are attributable to unobservable inputs.



	Year Ended
	December 31, 2019			December 31, 2018
Beginning balance	$	370,000		$	—
Issuance of warrant liabilities	3,330,000			—
Addition of derivative liability	—			420,000
Extinguishment of derivative liability (the Senior Convertible Note)	(370,000		)	—
Issuance of derivative liability (the Unsecured Convertible Note)	1,281,000			—
Exchange of the April Warrants and Placement Agent Warrants	(746,700		)
Change in fair value of warrant liabilities	54,200			—
Change in fair value of derivative liability	(873,000		)	(50,000		)
Ending balance	$	3,045,500		$	370,000

The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to the fair value liabilities still held at the end of the period	$	1,347,900		$	50,000

Fair Value, Assets Measured on Recurring and Nonrecurring Basis

The following table summarizes the fair value hierarchy of financial liabilities measured at fair value as of December 31, 2019 and 2018, respectively.



	December 31, 2019
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Derivative liability	$	—	$	—	$	408,000	$	408,000
Warrant liabilities	—		—		2,637,500		2,637,500
Total liabilities at fair value	$	—	$	—	$	3,045,500	$	3,045,500



	December 31, 2018
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Derivative liability	$	—	$	—	$	370,000	$	370,000
Warrant liabilities	—		—		—		—
Total liabilities at fair value	$	—	$	—	$	370,000	$	370,000

Schedule of Earnings Per Share, Basic and Diluted

The potentially dilutive securities consisted of the following:



	Year Ended December 31,
	2019	2018
Options outstanding under the Private Innovate Plan	6,063,745	6,340,871
Options outstanding under the Omnibus Plan	2,717,870	776,131
Warrants issued at a weighted-average exercise price of $55.31	154,403	154,403
Warrants issued at an exercise price of $2.54	349,555	349,555
Warrants issued at an exercise price of $3.18	1,410,358	1,410,358
Short-term warrants issued at an exercise price of $4.00	4,181,068	—
Long-term warrants issued at a weighted-average exercise price of $2.27	7,945,068	—
Total	22,822,067	9,031,318